NRI PULSE STAFF REPORT
Washington, DC, September 9, 2026 — The U.S. Department of Labor has suspended Cognizant’s ability to make new permanent labor certification filings, a critical first step in the employment-based green card process, as federal authorities investigate alleged fraud involving employment visa programs.
The action could have significant implications for foreign professionals — including thousands of Indian technology workers — who depend on employer sponsorship to pursue permanent residency in the United States.
Labor Department Inspector General Anthony D’Esposito announced the action Tuesday, September 8, saying Cognizant’s filings under the Permanent Labor Certification, or PERM, program had been suspended.
“Cognizant’s PERM filings are suspended,” D’Esposito wrote on X, adding that his office was working with Labor Department officials and the White House Fraud Task Force.
“Threats to American workers will NOT be tolerated,” he said. “Alongside @WHFraudTF, we’re following facts, fraud and finances.”
D’Esposito also announced that PERM filings by software company Cloudera had been suspended.
Federal authorities have not publicly disclosed the specific allegations against Cognizant or Cloudera, the number of applications affected, or how long the suspensions will remain in effect. No criminal charges against either company have been announced in connection with the action.
What is PERM and why does the suspension matter?
PERM is generally the first major step for an employer seeking to sponsor a foreign worker for an employment-based green card.
Before receiving labor certification, an employer must generally demonstrate that there are no qualified, willing and available U.S. workers for the position and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.
Once PERM certification is approved, the employer can typically move to the next stage of the green card process, including filing an immigrant petition with U.S. Citizenship and Immigration Services.
The suspension therefore does not amount to a blanket cancellation of green cards held by Cognizant employees. Rather, it prevents the company from moving forward with new PERM filings while the federal investigation continues. The government’s announcement also did not say that existing PERM approvals or already-issued green cards have been revoked.
That distinction is particularly important for Indian professionals, who make up a large share of employment-based immigrants waiting for permanent residency and can face extraordinarily long green card backlogs because of per-country limits.
H-1B processing also under scrutiny
In a subsequent social media post, D’Esposito went further, writing: “Cognizant. Cloudera. H1-B processing suspended.”
The precise scope and legal mechanism of the H-1B suspension, however, remain unclear. The Labor Department has not publicly released a detailed order explaining which H-1B processes are affected or what the action means for existing H-1B employees and previously approved petitions.
The H-1B and PERM programs are separate. H-1B allows U.S. employers to temporarily employ foreign professionals in specialty occupations, while PERM is generally part of the process of sponsoring a worker for permanent employment and, ultimately, a green card.
Cognizant is one of the largest users of the H-1B program in the United States. According to USCIS data cited in reports on the suspension, Cognizant had received approvals for 3,510 H-1B petitions through June 30 of fiscal year 2026.
Part of broader visa-fraud crackdown
The action comes amid a broader Trump administration crackdown on alleged misuse of employment-based immigration programs.
Federal investigators have been examining potential abuses of the H-1B and PERM systems, including fraudulent applications, improper recruitment practices, wage kickbacks and arrangements that authorities say could disadvantage American workers.
D’Esposito said the latest investigation is being conducted in coordination with the White House Fraud Task Force and other federal officials.
The government has not publicly established that Cognizant committed fraud, and the announcement of an investigation and suspension should not be interpreted as a finding of wrongdoing.
Cognizant had not issued a public response to the suspension at the time of reports published Wednesday morning.
The action comes just a day after Cognizant announced plans to expand its American workforce, including hiring 1,500 U.S. college graduates and expanding its Frontier Certified Engineer and Frontier Business Operator workforce to 15,000.
“We are hiring American graduates, standing up new American job categories for the AI era, and putting Cognizant’s capital and leadership behind a national coalition built to make sure this transition works for workers,” Cognizant CEO Ravi Kumar S said in announcing the initiative.
Cognizant, founded in Chennai in 1994 and now headquartered in Teaneck, New Jersey, has long maintained major operations in both India and the United States.
For Cognizant employees already in the employment-based green card pipeline, the impact will depend heavily on where their individual cases stand. Those whose employers have not yet filed PERM applications could face delays, while the government’s announcement does not by itself cancel previously approved PERM certifications, H-1B visas or green cards.
Cover photo credit: Wikimedia
